NAUTILUS P01 NOVEMBER 2009.qxd - Nautilus International

36 | telegraph | nautilusint.org | November 2009
PENSION FUNDS
Traditionally, most British merchant seafarers
have been members of an industry-wide pension
scheme rather than a scheme run by a single
employer. There are several industry-wide
schemes aimed at different groups, and most
involve a contribution from an employer as well
as from the seafarer who is a member. In addition,
many seafarers do now have access to a scheme
run by their own employer.
Details of the pension scheme you are eligible
to join can be obtained from your employer or the
Nautilus official dealing with your company. The
industry-wide schemes are as follows:
Merchant Navy Officers’ Pension Fund (MNOPF)
The MNOPF has two sections: Old (closed in
1978) and New (from 1978). The New Section is
now closed to new members, although service
continues to accrue for the remaining contributing
members. The New Section is a defined benefit
Protecting your
retirement rights
The key schemes for seafarers
scheme, based on career average salary, meaning
that members are guaranteed a certain level of
income on retirement.
Merchant Navy Officers’ Pension Plan (MNOPP)
The MNOPP is a defined contribution scheme,
meaning that members and their employers pay
into a fund which is invested in stocks, gilt-edged
securities, shares etc. When members retire, their
pension pot (the size of which is dependent on
investment performance and is not guaranteed) is
used to buy an annuity which gives them a regular
income. The MNOPP has been the main option for
seafarers and their employers since 1996.
Merchant Navy Ratings’ Pension Fund (MNRPF)
and Merchant Navy Ratings’ Pension Plan (MNRPP)
The MNRPF, a defined benefit scheme, was
founded in 1978 and closed to new members and
future accrual in 2001, when it was replaced by
the defined contribution scheme MNRPP.
The Maritime Stakeholder Plan (TMSP)
TMSP was established for Merchant Navy
officers and ratings who do not have access to an
employer-sponsored pension scheme such as the
MNOPP or MNRPP. It is a defined contribution
arrangement.
Nautilus International has a major say in the
running of the MNOPF and MNOPP, and was the
founder of TMSP. Day-to-day administration of all
the schemes except TMSP is carried out by MNPA
Ltd.
More information:
www.mnpa.co.uk
www.mnopf.co.uk
www.mnopp.co.uk
www.mnrpf.co.uk
www.pensionswealthplanning.co.uk/
nautilus.php
Giving you a voice on your future
P icture: jupiterimages
Worried about your retirement? Join us!
The Nautilus Pensions Association is a pressure group and support
organisation that:
z provides a new focal point for seafarer pensioners — increasing
their influence within, and knowledge of, the Merchant Navy
Officers’ Pension Fund and other schemes within the industry
z serves as a channel for professional advice on all kinds of
pensions, as well as offering specific information on legal and
government developments on pensions, and supporting the Union in
lobbying the government as required
z provides a ‘one-stop shop’ for advice on other organisations
providing support and assistance to pensioners
z offers a range of specialised services and benefits tailored to meet
the needs of retired members
z operates as a democratic organisation, being a Nautilus Council
body — with the secretary and secretariat provided by the Union
Oceanair House, 750-760 High Road, Leytonstone, London E11 3BB
t +44 (0)20 8989 6677 f +44 (0)20 8530 1015
npa@nautilusint.org www.nautilusint.org
Safeguards for
the Old Section
The Board of the Merchant Navy Officers’ Pension Fund (MNOPF)
bhas taken a big step towards securing the future for its ‘Old Section’
members.
Some £500m in pension liabilities are now more safely invested in
a bulk annuity contract purchased from specialist insurer Lucida plc. The
agreement entails Lucida insuring around 40% of the total pensioner
benefits of the old section.
The MNOPF old section closed to new members in 1978, and is therefore
dominated now by those drawing pensions. It is standard practice to move
the assets of funds like this into low-risk investments as time goes on, as
MNOPF chairman Peter McEwen explained last month:
‘Security has been the watchword in deciding to de-risk, in selecting
a provider and in negotiating the contract. This insurance policy takes a
significant step along that path and is an important contribution to our
wider strategy of progressively reducing risks across the fund.’
The insurance policy becomes a new asset class within the pension
scheme, overseen by the MNOPF trustee alongside the other scheme
assets. This means that members will continue to receive their pensions
from the MNOPF administrator MNPA in the usual way, and will not have
any contact with Lucida.
MNOPF old section members have been contacted individually by letter
about the change, which was the result of a year-long strategic review of
the fund’s management.
Nautilus has launched a new
body to serve as the voice of
retired UK Merchant Navy
seafarers and to provide
essential advice, support
and benefits to its members…
a
Forty-two thousand
British seafarers and
Merchant Navy pensioners
were invited to join the Nautilus
Pensions Association (NPA)
last month, in one of the Union’s
biggest ever mailings. The new
body will serve as both a pressure
group and a support body for
those concerned about their pensions;
membership is open to all
UK Merchant Navy seafarers.
The Union has administered
industry-wide pension schemes
for British seafarers since 1938,
and in recent years has ensured
regular face-to-face contact with
pension scheme members
through its popular pension
forums. Now, with the NPA, Nautilus
will be stepping up its services
to a new level.
The NPA will:
> provide a new focal point for
seafarer pensioners — increasing
their influence within, and knowledge
of, the Merchant Navy Officers’
Pension Fund and other
schemes within the industry
> serve as a channel for professional
advice on all kinds of pensions,
as well as offering specific
information on legal and government
developments on pensions,
and supporting the Union in
lobbying the government as
required
> provide a ‘one-stop shop’ for
advice on other organisations
providing support and assistance
to pensioners
> offer a range of specialised
services and benefits tailored to
meet the needs of retired members
> operate as a democratic organisation,
being a Nautilus Council
body — with the secretary and
secretariat provided by the
Union
The NPA will be supervised by a
committee of nine individuals —
four elected by the NPA membership
and four nominated by the
general secretary, plus the general
secretary. It will elect the four
committee members for a period
of office of four years, with half
being elected every two years. Two
of the four elected committee
members will be nominated by
Council as officer directors (i.e.
trustees) of the Merchant Navy
Officers’ Pension Fund (MNOPF).
The NPA committee will meet at
least once a year and will be able to
submit motions to Council, as
well as reporting back to a meeting
of Council once a year.
The NPA will also build on
the existing Nautilus pension
forums, continuing to hold at
least four NPA forums around the
UK each year, open to all NPA
members. The forums will be able
to submit motions to the NPA
committee and from there to the
Council — potentially shaping
the stance adopted at the MNOPF
and Merchant Navy Officers’ Pension
Plan (MNOPP) by the Union’s
officer directors.
British affiliate (retired) members
of Nautilus International will
automatically be enrolled in the
NPA free of charge. Pre-retirement
Nautilus members can opt to join
the NPA at no charge by contacting
head office, and other MN seafarers
can join for £3.60 per month
by filling in the application form
included in the recent mailing.
For more information, visit us
online at www.nautilusint.org/
membership and click on Pensions.
‘We are delighted to be able to
offer this new service to Merchant
Navy pension scheme members,’
said senior Nautilus official Peter
McEwen, who is chairman of the
MNOPF. ‘In the current economic
climate, it is crucial that pension
management is transparent as
well as prudent, and the NPA will
allow us to build an even stronger
relationship with members.’